Government meets BERT targets again

Government continues to meet all the targets and benchmarks set under the Barbados Economic Recovery and Transformation (BERT) Plan, but the Monitoring Committee has warned that may not continue unless measures are implemented to effectively manage the COVID-19 pandemic which has put a damper on the economy.

For the period ending September 30, 2021, fiscal and monetary targets were met, including the ceiling on public debt, the floor on net international reserves, the floor on social spending and ceiling on public institution arrears. The structural benchmarks required to be achieved under the EFF by the end of September were also met.

“Despite the impact of the COVID-19 pandemic combined with the volcanic ashfall and Hurricane Elsa, the Government of Barbados has continued to achieve all of its performance targets and, in particular, the primary balance of zero per cent of GDP and the growth in Net International Reserves to levels well above the programme target,” stated the report issued today.

However, it said the continued severity of the impact of COVID-19, the increasing challenges with supply chain logistics globally and continually increasing oil prices coupled with limited GDP growth opportunities are the principal risks to the programme.

“The Committee remains concerned that, even with the lowered fiscal surplus target it will continue to be a significant challenge to meet the targets established. Close monitoring and continuing collaboration and negotiation with the IMF must continue as the economic uncertainty remains at elevated levels,” it stated.

The Committee suggested that with the anticipated prolonged prevalence of COVID-19, it is critical that measures to effectively manage the situation are implemented so businesses can continue to operate safely and provide employment opportunities, and to ensure that the healthcare system does not become overwhelmed.